Opposition MP Harsha de Silva has raised concerns over the recent depreciation of the Sri Lankan Rupee, warning that weakening confidence in the government’s economic management could place further pressure on the currency.
He noted that the US dollar had climbed to around Rs. 342, while rates in the unofficial market were reportedly exceeding Rs. 345.
According to de Silva, currency markets are heavily influenced by investor and public confidence, and any decline in trust regarding economic management can contribute to exchange rate instability.
He said recent interest rate increases provided only temporary support to the rupee before it resumed its downward trend.
The MP also pointed to rising demand for foreign currency from importers settling Letters of Credit, as well as delays in remittances and export earnings, as some individuals anticipate further depreciation of the rupee.
De Silva warned that such developments could intensify pressure on the currency, emphasizing that maintaining market confidence remains essential for economic stability.
